Taking out a loan or store credit to purchase smaller non-durable items should be avoided. Rather save up for a few months and pay cash for these items. Even though many store accounts offer an interest free period, there is a temptation to buy more items than you initially intended and to spend more than you budgeted for. This will result in you eventually paying interest on the outstanding store account balance.

Use credit only for larger purchases such as university or school tuition, buying a flat or house or starting a business. These are things that will allow you to make more money in the future.